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3QFY2012 Result Update | Infrastructure

February 14, 2012

Simplex Infrastructures
Performance Highlights
Y/E March (` cr) Net sales Operating profit Net profit 3QFY12 1,594.3 127.4 18.0 3QFY11 1,166.7 107.6 23.2 2QFY12 1,322.0 119.0 17.9 % chg (yoy) 36.7 18.4 (22.3) % chg (qoq) 20.6 7.0 0.9

BUY
CMP Target Price
Investment Period
Stock Info Sector Market Cap (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code Infrastructure 988 0.4 366/157 3,615 2 17,849 5,416 SINF.BO SINF@IN

`200 `261
12 Months

Source: Company, Angel Research

For 3QFY2012, Simplex Infras (Simplex) numbers came above our and streets expectations on the revenue and earnings front and marginally lower at the EBITDAM level. At the end of the quarter, the companys order book stood at `14,442cr (2.9x FY2011 revenue). Order inflow for the quarter stood at `1,018cr, with the company having L1 orders worth `2,565cr. We are revising our estimates for FY2012 and FY2013 upwards owing to better-than-expected performance during the quarter. We maintain our Buy view on the stock. Healthy set of numbers: On the top-line front, Simplex reported robust growth of 36.7% yoy to `1,594cr, higher than our estimate of `1,348cr (consensus `1,145cr). This performance was on account of 40% and 15% yoy growth in the domestic and overseas segments, respectively. EBITDAM dipped by 120bp yoy to 8.0% for the quarter, marginally lower than our estimate of 8.6%. Interest cost came in at `55.0cr, reporting a jump of 52.0% yoy/7.6% qoq and in-line with our estimate of `54.3cr. PAT declined by 22.3% yoy to `18.0cr, above our estimate of `13.6cr. Better-than-expected bottom-line performance was due to robust revenue growth during the quarter. Outlook and valuation: Prior to 2QFY2012, Simplexs performance was affected by slowdown on the execution front, stretched working capital and subdued order inflow. However, in the past two quarters, Simplexs performance has improved, with execution and order inflow picking up along with improvement on the working capital front (during 3QFY2012). Hence, we have revised our estimates upwards for FY2012 and FY2013. Our revised target price for the stock is `261 (`233), based on 9x FY2013E earnings, implying an upside of 30.9%. Hence, we recommend Buy on the stock.

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 55.0 25.2 14.7 5.2

Abs. (%) Sensex Simplex

3m 4.3

1yr (1.9)

3yr 91.8 33.2

(1.4) (40.4)

Key financials (Consolidated)


Y/E March (` cr) Net Sales (incl op. income) % chg Adj. Net Profit % chg FDEPS (`) EBITDA Margin (%) P/E (x) RoAE (%) RoACE (%) P/BV (x) EV/Sales (x) EV/EBITDA (x)
Source: Company, Angel Research

FY2010 4,564 (3.1) 127.1 9.2 25.6 10.0 7.8 13.5 13.0 1.0 0.5 4.8

FY2011 4,889 7.1 106.7 (16.1) 21.5 9.8 9.3 10.3 11.8 0.9 0.5 5.3

FY2012E 5,961 21.9 119.0 11.5 24.0 9.4 8.3 10.4 11.6 0.8 0.5 5.6

FY2013E 6,732 12.9 144.3 21.3 29.1 9.5 6.9 11.4 11.9 0.7 0.4 4.7

Shailesh Kanani
022-39357800 Ext: 6829 shailesh.kanani@angelbroking.com

Nitin Arora
022-39357800 Ext: 6842 nitin.arora@angelbroking.com

Please refer to important disclosures at the end of this report

Simplex Infra | 3QFY2012 Result Update

Exhibit 1: Quarterly performance (Standalone)


Y/E March (` cr) Net Sales Total Expenditure Operating Profit OPM (%) Interest Depreciation Non Operating Income Nonrecurring items Profit Before tax Tax Net Profit before MI PAT (%) Minority Interest (MI) Net Profit after MI Adj. PAT (%) Adj. FDEPS
Source: Company, Angel Research

3QFY12 1,594 1,467 127 8.0 55 49 3 27 9 18 1.1 18 1.1 3.6

3QFY11 1,167 1,059 108 9.2 36 40 3 34 11 23 2.0 23 2.0 4.7

2QFY12 1,322 1,203 119 9.0 51 44 2 26 8 18 1.4 18 1.4 3.6

% chg (yoy) 36.7 38.5 18.4 (120)bp 52.0 20.9 (2.0) (22.0) (21.4) (22.3) (22.3) (22.3)

% chg (qoq) 20.6 21.9 7.0 (100)bp 7.6 10.2 38.9 3.1 8.1 0.9 0.9 0.9

9MFY12 4,177 3,811 367 9 156 135 13 88 28 60 1.4 60 1.4 12.1

9MFY11 3,395 3,062 333 94 119 7 128 41 86 2.5 86 2.5 17.4

% chg 6.9 7.0 5.9 17.9 5.7 31.7 0.8 4.0 (1.1) (1.5) (1.5)

10 (100)bp

Exhibit 2: 3QFY2012 Actual vs. Estimates


(` cr) Net Sales EBITDA EBITDAM (%) Interest and Financial Charges PAT
Source: Company, Angel Research

Estimates 1,348.4 116.4 8.6 54.3 13.6

Actual 1594.3 127.4 8.0 55.0 18.0

Variation (%) 18.2 9.4 (60)bp 1.3 32.7

Robust top-line growth


On the top-line front, Simplex reported robust growth of 36.7% yoy to `1,594cr, higher than our estimate of `1,348cr (consensus `1,145cr). This better-thanexpected performance was on account of 40% and 15% yoy growth in the domestic and overseas segments, respectively. At the end of the quarter, the companys order book stood at `14,442cr (2.9x FY2011 revenue). Order inflow for the quarter stood at `1,018cr, down 47.8% qoq and 52.2% yoy. As per management, the infrastructure, building and power segments have witnessed good order inflow activity, whereas the industrial segment has seen poor order awarding activity. Further, for FY2012, management expects to achieve order inflow of ~`7,000cr (`6,000cr already achieved) and accordingly we are factoring in order inflow of `7,696cr and `8,194cr for FY2012 and FY2013, respectively.

February 14, 2012

Simplex Infra | 3QFY2012 Result Update

Exhibit 3: Robust top-line growth


1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 74.1 79.5 44.8 25.7 11.1 5.1 (15.9) (9.6) 4.1 (0.5) 9.4 9.2 7.1 100.0 80.0 36.7 60.0 40.0 20.0 0.0 (20.0) (40.0)

Exhibit 4: Composition of revenue (3QFY2012, ` cr)

2QFY09

3QFY09

4QFY09

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

Sales (` cr, LHS)

Growth (yoy %, RHS)

3QFY12

Source: Company, Angel Research

Source: Company, Angel Research

Lower EBITDAM and interest burden mar earnings growth


The companys EBITDAM dipped by 120bp yoy to 8.0% for the quarter, marginally lower than our estimate of 8.6%. EBITDAM was lower on account of initial start-up cost incurred in few projects and owing to foreign exchange loss (`3.3cr). Interest cost came in at `55.0cr, growth of 52.0% yoy/7.6% qoq and in-line with our estimate of `54.3cr. PAT declined by 22.3% yoy to `18.0cr, above our estimate of `13.6cr. Better-than-expected bottom-line performance was due to robust revenue growth during the quarter.

Exhibit 5: EBITDAM takes a hit


160.0 140.0 120.0 100.0 80.0 60.0 40.0 20.0 0.0 9.9 10.3 10.4 9.1 8.1 9.6 10.3 10.2 10.1 9.2 10.0 12.0 9.5 9.0 8.0 10.0 8.0 6.0 4.0 2.0 0.0

Exhibit 6: PATM falls due to lower EBITDAM and higher int. cost
50.0 40.0 30.0 20.0 10.0 0.0 3.0 2.5 2.0 2.2 2.8 3.5 3.1 2.5 2.6 2.0 2.7 1.9 1.4 1.1 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0

2QFY09

3QFY09

4QFY09

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

2QFY09

3QFY09

4QFY09

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

EBITDA (`cr, LHS)

EBITDAM (%, RHS)

PAT (` cr, LHS)

PATM (%, RHS)

Source: Company, Angel Research

Source: Company, Angel Research

Order book analysis


Simplex reported order inflow of `1,018cr for the quarter, down 47.8% qoq and 52.2% yoy. The company is L1 for orders worth `2,565cr. Therefore, the companys order book stands at `14,442cr, 1.8% below that in FY2011 ending. However, going forward, the companys order book position is set to improve, as order awarding activity picks up (Simplex has already bagged `2,094cr worth of projects in January and February 2012). The companys order book comprises 88% domestic and 12% overseas orders. Client mix for the quarter stands at ~63% for private sector orders and ~28% for government sector orders, and the balance from the PPP side.

February 14, 2012

3QFY12

Simplex Infra | 3QFY2012 Result Update

Exhibit 7: Order inflow for 3QFY12 Segment wise (%)

Exhibit 8: Order backlog Segment wise (%)

Source: Company, Angel Research

Source: Company, Angel Research

Outlook and valuation


Prior to 2QFY2012, Simplexs performance was affected by slowdown the on execution front, stretched working capital and subdued order inflow. However, in the past two quarters, Simplexs performance has improved, with execution and order inflow picking up along with improvement on the working capital front (during 3QFY2012). Hence, we have revised our estimates upwards for FY2012 and FY2013. Our revised target price for the stock is `261 (`233), based on 9x FY2013E earnings, implying an upside of 30.9%. Hence, we recommend Buy on the stock.

Exhibit 9: Historical one-year forward PE band


45 40 35 30 25 20 15 10 5 0
14-Feb-05 14-Feb-06 14-Feb-07 14-Feb-08 14-Feb-09 14-Feb-10 14-Feb-11 14-May-05 14-May-06 14-May-08 14-May-09 14-May-07 14-May-10 14-May-11 14-Aug-06 14-Aug-09 14-Aug-05 14-Aug-08 14-Aug-10 14-Aug-07 14-Nov-05 14-Nov-06 14-Nov-07 14-Nov-08 14-Nov-09 14-Nov-10 14-Aug-11 14-Nov-11 14-Feb-12

P/E

7YEAR AVG

5YEAR AVG

3YEAR AVG

Source: Company, Angel Research

February 14, 2012

Simplex Infra | 3QFY2012 Result Update

Exhibit 10: Change in estimates


FY2012E Earlier estimates Revised estimates Revenues (` cr) EBITDA Margins (%) PAT (` cr)
Source: Company, Angel Research

FY2013E Variation (%) Earlier estimates Revised estimates 7.2 26.6 6,485 9.5 128.6 6,732 9.5 144.3 Variation (%) 3.8 12.2

5,561.7 9.4 94.0

5,960.5 9.4 119.0

Exhibit 11: Key assumptions


(` cr) Order Inflow Revenues Order Backlog (Y/E) OB to Sales ratio (x)
Source: Company, Angel Research

FY2007 2,180 1,708 5,100 3.0

FY2008 6,694 2,808 8,985 3.2

FY2009 5,786 4,713 10,059 2.1

FY2010 5,996 4,564 11,491 2.5

FY2011 8,382 4,889 15,117 3.1

FY2012E 7,696 5,961 16,852 2.8

FY2013E 8,194 6,732 18,315 2.7

Exhibit 12: Angel EPS forecast vs. consensus


Angel Forecast FY2012E FY2013E
Source: Company, Angel Research

Bloomberg Consensus 20.3 26.7

Variation (%) (15.3) (8.3)

24.0 29.1

Investment argument
Diversified play
Simplex is one of the oldest infrastructure companies in India (over eight decades of work log). Since inception, the company has been involved in the different segments of the infrastructure sector, from piling (1924) to power (1960), to roads, railways and bridges (1980), and the real estate business (2007). The company has executed ~2,400 projects and is currently involved in >150 ongoing projects in India and abroad. This indicates the company's execution capabilities, apart from qualifying it to successfully execute complex and numerous projects on time. The company is also well spread geographically, with a presence in the Middle-Eastern countries of Qatar, Oman, Dubai and Abu Dhabi and now venturing in newer territories such as Bangladesh. In terms of its client profile, Simplex has a healthy mix of government and private sector projects. This successful diversification has not only provided the company the experience of executing different and complex projects but has also qualified it to bid for bigger ticket-size projects going ahead.

February 14, 2012

Simplex Infra | 3QFY2012 Result Update

Exhibit 13: Recommendation summary


Company ABL CCCL HCC IRB Infra ITNL IVRCL JP Assoc. L&T Madhucon NCC Patel Engg Punj Lloyd Sadbhav Simplex In. CMP 195 18 29 176 211 61 79 67 62 117 62 142 200 TP 245 Rating FY11 Buy 1,302 2,199 4,093 2,438 4,049 5,651 17 Reduce - Neutral 182 Neutral 235 88 77 Accu. - Neutral Top-line (` cr) FY12E 1,648 2,258 3,915 3,176 5,178 5,426 FY13E CAGR (%) 1,853 2,646 4,633 3,781 6,619 6,458 19.3 9.7 6.4 24.5 27.9 6.9 7.6 17.2 17.4 6.8 1.9 16.2 8.2 17.3 19.2 2.5 1.2 13.6 22.3 5.9 5.5 54.3 5.6 6.4 17.6 (5.4) 8.0 21.5 EPS (`) FY11 FY12E FY13E CAGR (%) 21.7 (1.5) (3.1) 14.2 22.9 3.4 2.7 63.7 4.4 1.4 14.9 3.5 9.3 24.0 25.4 2.4 0.6 13.1 26.0 4.6 4.2 70.9 4.7 3.5 14.8 2.9 9.2 29.1 15.2 (3.6) (25.8) (2.0) 7.8 (11.5) (12.6) 14.2 (8.1) (26.1) (8.3) 7.3 16.3 Adj. P/E (x) 10.2 7.1 24.9 12.9 9.4 10.4 14.5 25.4 12.0 9.8 6.6 17.8 9.3 9.0 12.5 9.2 18.1 29.1 21.7 15.1 45.2 7.8 17.5 15.3 8.3 7.7 7.7 45.3 13.5 8.1 13.3 18.9 19.5 14.2 17.9 7.9 21.2 15.4 6.9 OB/ 4.2 2.7 4.0 5.2 4.5 3.3 3.8 4.3 2.7 3.6 2.7 2.9 FY11 FY12E FY13E Sales (x)

Accu. 13,832 13,763 16,017 Buy 43,905 53,779 60,258 Buy 1,816 5,074 3,476 2,209 4,889 1,952 4,946 3,573 2,602 5,961 2,503 5,790 3,609 2,585 6,732

1,379 1,608

61 Neutral - Neutral - Neutral 157 261 Accu. Buy

7,850 10,147 10,592

Source: Company, Angel Research

Exhibit 14: SOTP breakup


Company ` ABL CCCL HCC IRB Infra ITNL IVRCL JP Assoc. L&T Madhucon NCC Patel Engg Punj Lloyd Sadbhav Simplex In. 104 17 4 116 59 37 31 1,276 23 29 55 71 83 261 Core Const. % to TP 42 100 12 64 25 66 35 79 30 48 51 100 53 100 ` 12 24 2 2 17 Real Estate % to TP 37 27 3 3 16 ` 141 16 61 152 52 8 16 75 Road BOT % to TP 58 51 34 65 68 14 15 47 Invst. In Subsidiaries ` 4 19 332 % to TP 2 34 21 22 19 25 33 ` Others % to TP 10 37 35 18 Total ` 245 17 32 182 235 56 88 1,608 77 61 106 71 157 261

Source: Company, Angel Research

February 14, 2012

Simplex Infra | 3QFY2012 Result Update

Profit & loss statement (Consolidated)


Y/E March (` cr) Net Sales Other operating income Total operating income % chg Total Expenditure Net Raw Materials Other Mfg costs Personnel Other EBITDA % chg (% of Net Sales) Depreciation& Amortisation EBIT % chg (% of Net Sales) Interest & other Charges Other Inc (incl pft from Ass/JV) (% of PBT) Recurring PBT % chg Extraordinary Expense/(Inc.) PBT (reported) Tax (% of PBT) PAT (reported) Less: Minority interest (MI) Prior period items PAT after MI (reported) ADJ. PAT % chg (% of Net Sales) Basic EPS (`) (Reported) Fully Diluted EPS (`) (Diluted) % chg
FY2008 2,808 2,808 64.4 2,545 1,275 279 839 152 264 65.6 9.4 64 199 66.0 7.1 109 37 28.8 127 81.1 127 37 29.1 90 90 90 67.7 3.2 18.2 18.1 67.7 FY2009 4,696 16 4,713 67.8 4,309 2,149 483 1,413 263 404 53.2 8.6 132 272 36.4 5.8 151 46 27.5 166 30.8 (7) 173 49 28.3 124 0.8 123 116 29.3 2.5 24.9 23.5 29.3 FY2010 4,552 12 4,564 (3.1) 4,110 1,856 504 1,472 278 454 12.5 10.0 157 297 9.2 6.5 122 26 13.0 201 20.6 201 71 35.6 129 1.9 127 127 9.2 2.8 25.6 25.6 9.2 FY2011 FY2012E FY2013E 4,875 14 4,889 7.1 4,412 1,945 617 1,571 279 477 5.1 9.8 167 310 4.6 6.4 148 38 18.8 200 (0.1) (18) 218 92 42.3 126 1.4 125 107 (16.1) 2.2 25.1 21.5 (16.1) 5,947 14 5,961 21.9 5,403 2,396 657 2,011 339 557 16.8 9.4 184 373 20.2 6.3 235 40 22.2 178 (11.1) 178 58 32.4 120 1.3 119 119 11.5 2.0 24.0 24.0 11.5 6,718 14 6,732 12.9 6,095 2,693 740 2,275 386 637 14.2 9.5 206 431 15.6 6.4 255 40 18.5 216 21.3 216 70 32.4 146 1.6 144 144 21.3 2.1 29.1 29.1 21.3

February 14, 2012

Simplex Infra | 3QFY2012 Result Update

Balance sheet (Consolidated)


Y/E March (` cr) SOURCES OF FUNDS Equity Share Capital Preference Capital Reserves & Surplus Shareholders Funds Minority Interest Total Loans Deferred Tax Liability Total Liabilities APPLICATION OF FUNDS Gross Block Less: Acc. Depreciation Net Block Capital Work-in-Progress Investments Current Assets Inventories Sundry Debtors Cash Loans & Advances Other Current liabilities Net Current Assets Misc. Exp. not written off Total Assets
757 127 629 24 10 2,152 474 1,150 123 321 83 1,276 876 1,540 1,219 208 1,011 14 2 2,946 679 1,682 119 338 127 1,784 1,162 2,189 1,277 289 988 19 3 3,125 671 1,806 110 398 140 1,760 1,364 2,374 1,509 385 1,123 27 23 3,767 811 2,298 108 405 145 2,048 1,719 2,893 1,684 495 1,189 30 78 4,705 1,061 2,851 76 540 176 2,447 2,258 3,555 1,859 616 1,243 33 183 5,183 1,226 2,899 213 646 199 2,949 2,233 3,693 10 743 753 749 37 1,540 10 899 909 1 1,220 58 2,189 10 968 978 5 1,302 88 2,374 10 1,078 1,088 6 1,661 138 2,893 10 1,185 1,195 6 2,216 138 3,555 10 1,318 1,328 6 2,220 138 3,693 FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E

February 14, 2012

Simplex Infra | 3QFY2012 Result Update

Cash flow statement (Consolidated)


Y/E March (` cr) Profit before tax (excluding MI) Depreciation Change in Working Capital Less: Other income Direct taxes paid Cash Flow from Operations (Inc.)/ Dec. in Fixed Assets (Inc.)/ Dec. in Investments Other income Cash Flow from Investing Issue of Equity Inc./(Dec.) in loans Dividend Paid (Incl. Tax) Others Cash Flow from Financing Inc./(Dec.) in Cash Opening Cash balances Closing Cash balances
FY2008 127 37 181 37 23 (76) (328) (5) 37 (296) 429 62 8 (31) 452 81 42 123 FY2009 173 79 358 46 30 (181) (408) 8 46 (355) 444 12 100 532 (4) 123 119 FY2010 201 92 314 26 46 (93) (118) (1) 26 (93) 107 12 82 177 (9) 119 110 FY2011 FY2012E FY2013E 217 96 357 38 16 (97) (241) (20) 38 (223) 358 11 (29) 318 (2) 110 108 177 109 571 40 58 (382) (178) (55) 40 (193) 555 12 543 (32) 108 76 214 121 (161) 40 70 387 (178) (105) 40 (243) 5 12 (7) 137 76 213

February 14, 2012

Simplex Infra | 3QFY2012 Result Update

Key Ratios Y/E March Valuation Ratio (x) P/E (on FDEPS) P/CEPS P/BV Dividend yield (%) EV/Sales EV/EBITDA EV / Total Assets Order Book to Sales Per Share Data (`) EPS (Basic) EPS (fully diluted) Cash EPS DPS Book Value DuPont Analysis EBIT margin Tax retention ratio Asset turnover (x) ROIC (Post-tax) Cost of Debt (Post Tax) Leverage (x) Operating ROE Returns (%) ROACE (Pre-tax) Angel ROIC (Pre-tax) ROAE Turnover ratios (x) Asset Turnover (Gross Block) Inventory / Sales (days) Receivables (days) Payables (days) Wcap cycle (ex-cash) (days) Solvency ratios (x) Net debt to equity Net debt to EBITDA Interest Coverage
0.8 2.4 1.8 1.2 2.7 1.8 1.2 2.6 2.4 1.4 3.3 2.1 1.8 3.8 1.6 1.5 3.2 1.7 4.7 49 130 130 86 4.8 45 110 116 70 3.7 54 139 141 92 3.5 55 153 141 107 3.7 57 158 137 116 3.8 62 156 145 114 15.8 16.9 17.5 14.6 15.6 14.0 13.0 13.7 13.5 11.8 12.3 10.3 11.6 11.9 10.4 11.9 12.4 11.4 7.1 0.7 2.4 12.0 10.7 1.2 13.5 5.8 0.7 2.7 11.2 11.0 1.0 11.4 6.5 0.6 2.1 8.8 6.2 1.2 11.9 6.3 0.6 1.9 7.1 5.8 1.3 8.9 6.3 0.7 1.9 8.0 8.2 1.6 7.8 6.4 0.7 1.9 8.4 7.8 1.6 9.4 18.2 18.1 25.6 2.0 152 24.9 23.5 39.3 2.0 183 25.6 25.6 44.2 2.0 197 25.1 21.5 40.9 2.0 219 24.0 24.0 46.0 2.0 241 29.1 29.1 53.4 2.0 267 11.0 7.8 1.3 1.0 0.6 6.1 1.1 3.2 8.5 5.1 1.1 1.0 0.4 5.2 1.0 2.1 7.8 4.5 1.0 1.0 0.5 4.8 0.9 2.5 9.3 4.9 0.9 1.0 0.5 5.3 0.9 3.1 8.3 4.3 0.8 1.0 0.5 5.6 0.9 2.8 6.9 3.7 0.7 1.0 0.4 4.7 0.8 2.7 FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E

February 14, 2012

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Simplex Infra | 3QFY2012 Result Update

Research Team Tel: 022 - 39357800

E-mail: research@angelbroking.com

Website: www.angelbroking.com

DISCLAIMER
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment. Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamentals. The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as this document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory, compliance, or other reasons that prevent us from doing so. This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced, redistributed or passed on, directly or indirectly. Angel Broking Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past. Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in connection with the use of this information. Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement 1. Analyst ownership of the stock 2. Angel and its Group companies ownership of the stock 3. Angel and its Group companies' Directors ownership of the stock 4. Broking relationship with company covered

Simplex Infra No No No No

Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors.

Ratings (Returns):

Buy (> 15%) Reduce (-5% to 15%)

Accumulate (5% to 15%) Sell (< -15%)

Neutral (-5 to 5%)

February 14, 2012

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